Correlation Between Gol Intelligent and Computer

Can any of the company-specific risk be diversified away by investing in both Gol Intelligent and Computer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Gol Intelligent and Computer into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gol Intelligent Airlines and Computer And Technologies, you can compare the effects of market volatilities on Gol Intelligent and Computer and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Gol Intelligent with a short position of Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gol Intelligent and Computer.

Diversification Opportunities for Gol Intelligent and Computer

0.0

Correlation Coefficient

Gol Intelligent  Computer

Pay attention - limited upside

The 3 months correlation between Gol and Computer is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gol Intelligent Airlines and Computer And Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Computer And Technologies and Gol Intelligent is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Gol Intelligent Airlines are associated (or correlated) with Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Computer And Technologies has no effect on the direction of Gol Intelligent i.e., Gol Intelligent and Computer go up and down completely randomly.

Pair Corralation between Gol Intelligent and Computer

Assuming the 90 days trading horizon Gol Intelligent Airlines is expected to under-perform the Computer. In addition to that, Gol Intelligent is 2.5 times more volatile than Computer And Technologies. It trades about -0.02 of its total potential returns per unit of risk. Computer And Technologies is currently generating about 0.02 per unit of volatility. If you would invest  16.00  in Computer And Technologies on October 2, 2024 and sell it today you would earn a total of  1.00  from holding Computer And Technologies or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Gol Intelligent Airlines  vs.  Computer And Technologies

Gol Intelligent Airlines

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Gol Intelligent Airlines has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gol Intelligent is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Computer And Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Computer And Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Gol Intelligent and Computer

The main advantage of trading using opposite Gol Intelligent and Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gol Intelligent position performs unexpectedly, Computer can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Computer will offset losses from the drop in Computer's long position.

The idea behind Gol Intelligent Airlines and Computer And Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.